Audit Program Cash and bank balances

Audit Program WP Ref.:

Prepared by:
(i) Cash and bank
balances Date:

Reviewed by

Date

Client:

Period:

Subject: Cash and bank balances

Amount in
Rs.
Account balances:
Cash in hand
Cash at bank- Current
- PLS

Classes of transactions:

S. Audit Objectives Assertions Risk Assessment

No.

IR CR ROSM

1. All cash and bank balances are

completely and accurately
recorded CA

2. All recorded cash and bank

balances actually exist. E

3. All cash and bank balances are

recorded at appropriate values. V

4. All cash and bank balances

recorded are owned by the client
and title is also in the name of
client. R
 5. All cash and bank balances are
presented and all disclosures
have been given in accordance with
the Fourth Schedule of the
Companies Ordinance, 1984 and OCAL
relevant IASs. RVU

S. Audit Procedures Objective Done W. P. Ref.

No. by

Test of Controls

1. Assess the reasonableness of ALL

design of system of internal
control by enquiring relevant
client personnel and documenting
the same (if not a documented
system manual has been developed
by the client). A walk through
test would be necessary to confirm
the understanding as documented.
Identify the preventive
(exercised before incurrence of
transactions and event) and
detective (exercised after
incurrence of transactions and
event) controls established by
management to support its
assertions.

2. Check on sample of selected ALL

transactions covering the whole
period that all preventive
controls are exercised on all
transactions.

3. Check on a sample of transactions ALL

that detective controls are
appropriately been exercised and
in case of any detection of error/
fraud, proper steps have been
taken to avoid recurrence of the
same.

4. Check that proper bank ALL

reconciliations are prepared,
checked and approved. Long
outstanding items are followed up
and proper disposition of such
items is made.
S. Audit Procedures Objective Done W. P. Ref.
No. by

5. Proper segregation of duties CE

between custodian and accounting
and approving personnel exist.

6. Payments vouchers are ECA

appropriately prepared and
properly approved by designated
authority.

S. Audit Procedures Objective Done W. P.

No. by Ref.

7. Ensure that management does not

override the designed controls by

Enquiring from the

designated staff person

Remain skeptical
during performing test of
design and test of
effective operation

8. Document the conclusion after N/A

performing test of controls and
required level of assurance from
substantive procedures.

Analytical Procedures

1. Document logical commercial AU

reasons for new bank accounts
opened and closed during the
year.

2. Compare current year balances CEA

with last year balances and
ensure that any significant
variation should be properly
and logically reasoned.

Test of Details
S. Audit Procedures Objective Done W. P.
No. by Ref.

1. Attend year-end cash count and E

deposit verification.

2. Circularize direct ER
confirmations to all banks.

3. Trace opening balance in CE

general ledger from last year
working papers.

4. Obtain and examine bank CEA

reconciliations ensure the
following: -

No long outstanding
item should remain
unfollowed,

No revenue nature
item should be appearing

All deposit made

should be cleared within
two days

No long outstanding
cheques of significant
amount are unpresented;
if so then check their
payment voucher and
ensure that no
discrepancy is
involved.

5. Ensure that all balances etc. CA

reported by bank in replies to
bank confirmation request are
included in records of the
client.

6. Ensure that no balances are U

subject any encumbrance, if so
then disclosure is made.

7. Convert FCY accounts into PKR V

at year-end rate.

8. Ensure that all bank accounts R

are in company's name.
S. Audit Procedures Objective Done W. P.
No. by Ref.

9. Ensure that closing balances N/A

as per our working paper file
are in match with general
ledger.

10. Determine that disclosures OCAL

have been made in accordance RVU
with the requirements of
Fourth Schedule to the
Companies Ordinance, 1984 and
the applicable IASs.